Will Barratt Developments turn, or will it continue to rise towards 661p?

• Breakout above 578p to trade fresh 12 month highs
• Now trading 592p (at time of writing).
• Shares 0.3% from 2019 highs; +31.4% from 2019 lows; +28% year-to-date
• 26 Feb: UK housebuilder shares strong on Brexit optimism
• Source: Bloomberg, FT, Reuters, DJ Newswires, AlphaTerminal

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Trading Barratt Developments – An Example

Let’s say the breakout appeals to you, you think it’s likely to continue towards 661p. You decide to buy exposure to £10,000 worth of Barratt using a CFD, at the current price of 578p. To do this, you need £2,000.

Let’s assume the Barratt trend continues to highs of 661p (+14.4%). Your profit would be £1440, from your initial investment of £2,000.

Conversely, let’s assume you open the above position, and place a stop-loss at 3% from the current price. Barratt breaks lower, falling 3% and it hits your stop-loss. Your loss would be £300.

This is provided for information purposes only. It should not be taken as a recommendation.